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In-Depth Incorporation FAQ

What is the difference between an S-Corporation and a C-Corporation?

The S-Corporation is similar in structure to a C-Corporation, yet it is not subject to the C-Corporation "double tax." The profits of an S-Corporation will only be taxed at the individual level, whereas a C-Corporation is taxed at the corporate and individual level.

An S-Corporation is initially formed as a C-Corporation by filing the Articles of Incorporation within a state. The C-Corporation can then become an S-Corporation when an extra step is taken by filing with the IRS.